NY Regulator Urges Banks to Adopt Blockchain Tools Amid Crypto Expansion

- NYDFS stresses blockchain analytics as vital risk mitigation measure - Initiative follows NYDFS licensing of crypto firm Bullish On September 17, 2025, the New York State Department of Financial Services (NYDFS) issued guidance urging traditional banking institutions to adopt blockchain analytics tools to help combat money laundering, terrorist financing, and other illicit financial activities. As virtual currency adoption accelerates, this initiative highlights the mounting regulatory pressure to address emerging risks in the digital finance ecosystem. On September 17, The Block reported that the guidance helps banks enhance compliance processes as they expand their digital asset operations, with Superintendent Adrienne Harris emphasizing that banks must modernize their compliance and risk management systems to match the evolving financial landscape. The NYDFS specifically recommended that banks integrate blockchain analytics into key operations, including vetting cryptocurrency wallets and assessing risks associated with new digital asset products. This announcement also highlights the NYDFS's ongoing regulatory efforts, as it coincides with the department issuing a BitLicense and a Money Transmission License to Bullish, a crypto market infrastructure firm. In addition, this move builds upon the department's 2022 statement, which encouraged state-registered financial institutions to embrace blockchain technology as part of their operational frameworks.